(GuruFocus, August 8, 2009) The much anticipated 2Q09 Berkshire Hathaway earning report was release last night. It is “Solid Result in Difficult Times”, as reviewed by our columnist Ravi Nagarajan.
GuruFocus readers would be anxious to know what stock Warren Buffett bought for Berkshire Hathaway for the quarter. The complete Form 13-F is not available yet, so we do not have the complete slate. However, Buffett did include a list of top holdings on Page 8 of the 10-Q, from which and incorporate the Buffett’s 2Q09 Portfolio information on GuruFocus, we can determine that he bought some more shares of Johnson & Johnson and Wells Fargo, sold more shares of ConocoPhllips, but kept steady on American Express Company, The Coca-Cola Company, Kraft Food, Procter & Gamble.
1. Johnson & Johnson (JNJ, Financial)
Johnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. The company's worldwide business is divided into three segments: Consumer; Pharmaceutical; and Professional. Johnson & Johnson has a market cap of $165.06 billion; its shares were traded at around $59.9 with a P/E ratio of 13.3 and P/S ratio of 2.6. The dividend yield of Johnson & Johnson stocks is 3.2%. Johnson & Johnson had an annual average earning growth of 12.5% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 4.5-star.
Berkshire owned 32.5 million shares as of 1Q09 and 38.3 million shares as of 2Q09, so it may have bought 5.8 million shares.
2. Wells Fargo & Company (WFC, Financial)
Wells Fargo & Company is a diversified financial services company providing banking insurance investments mortgage and consumer finance services through stores its Internet site and other distribution channels across North America as well as internationally. Wells Fargo & Company has a market cap of $135.31 billion; its shares were traded at around $28.76 with a P/E ratio of 32.2 and P/S ratio of 2.6. The dividend yield of Wells Fargo & Company stocks is 0.8%. Wells Fargo & Company had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Wells Fargo & Company the business predictability rank of 4-star.
Berkshire owned 302.6 million shares as of 1Q09 and 316.8 million shares as of 2Q09, so it may have bought 14.2 million shares.
3. ConocoPhillips (COP, Financial)
ConocoPhillips is a major international integrated energy company with operations in some 49 countries. ConocoPhillips has a market cap of $65.29 billion; its shares were traded at around $44.07 with a P/E ratio of 7.3 and P/S ratio of 0.3. The dividend yield of ConocoPhillips stocks is 4.2%. ConocoPhillips had an annual average earning growth of 19% over the past 10 years.
Berkshire owned 71.2 million shares as of 1Q09 and 64.5 million shares as of 2Q09, so it may have sold 6.7 million shares.
The sale should not be a surprise as Warren Buffett stated the fact in the 1Q09 10-Q:
Other Top Holdings
The 10-Q Listed the other four top holding positions: American Express, CoCa-Cola, Kraft Foods, and Procter & Gamble. It appears he has held those positions steady.
American Express Company is primarily engaged in international credit card and banking services throughout the world. American Express Company has a market cap of $38.17 billion; its shares were traded at around $32.69 with a P/E ratio of 24 and P/S ratio of 1.4. The dividend yield of American Express Company stocks is 2.2%. American Express Company had an annual average earning growth of 1.3% over the past 10 years. Berkshire holds 151.6 million shares/
The Coca-Cola Company is the world's largest beverage company and is the leading producer and marketer of soft drinks. The CocaCola Company has a market cap of $114.22 billion; its shares were traded at around $49.34 with a P/E ratio of 16.3 and P/S ratio of 3.6. The dividend yield of The CocaCola Company stocks is 3.3%. The CocaCola Company had an annual average earning growth of 5.3% over the past 10 years. GuruFocus rated The CocaCola Company the business predictability rank of 2-star. Berkshire Hathaway has 200 million shares.
Kraft Foods Inc. is the largest branded food and beverage company headquartered in the U.S. and the second largest in the world. Kraft Foods Inc. has a market cap of $42.27 billion; its shares were traded at around $28.7 with a P/E ratio of 15.1 and P/S ratio of 1. The dividend yield of Kraft Foods Inc. stocks is 4.1%. Berkshire owns over 130 million shares of KFT.
The Procter & Gamble Company manufactures and markets a broad range of consumer products in many countries throughout the world. The Procter & Gamble Company has a market cap of $151.65 billion; its shares were traded at around $52.03 with a P/E ratio of 14.5 and P/S ratio of 1.7. The dividend yield of The Procter & Gamble Company stocks is 3.5%. The Procter & Gamble Company had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated The Procter & Gamble Company the business predictability rank of 3-star.Berkshire owns over 90 million shares of PG.
What to Look Forward to
As of 1Q09, Berkshire Hathaway owns 41 domestic stocks in equity portfolio. What else did he change to the portfolio? We are waiting for the 13-F filing to get a complete picture for what Buffett has bought or sold for the Berkshire. That new information will be coming in about one week.
GuruFocus is holding a contest asking users to name the stocks that Warren Buffett bought for the quarter ended on June 30, 2009. Two winners will be chosen after Warren Buffett's Form 13-F is filed. The register-user only contest is still on, click here to participate.
GuruFocus takes it as its mission to document the investment activities and methodologies of Investment Gurus such as Warren Buffett. More information is available to Premium Member. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
GuruFocus readers would be anxious to know what stock Warren Buffett bought for Berkshire Hathaway for the quarter. The complete Form 13-F is not available yet, so we do not have the complete slate. However, Buffett did include a list of top holdings on Page 8 of the 10-Q, from which and incorporate the Buffett’s 2Q09 Portfolio information on GuruFocus, we can determine that he bought some more shares of Johnson & Johnson and Wells Fargo, sold more shares of ConocoPhllips, but kept steady on American Express Company, The Coca-Cola Company, Kraft Food, Procter & Gamble.
| Symbol | 2Q09 Market Value (M$) | June 30 Share Price | 2Q09Shares (M) | 1Q09 Shares (M) | Buy(Sell) (M) |
|---|---|---|---|---|---|
| JNJ | 2176 | $56.80 | 38.3 | 32.5 | 5.8 |
| WFC | 7685 | $24.26 | 316.8 | 302.6 | 14.2 |
| COP | 2712 | $42.06 | 64.5 | 71.2 | (6.7) |
| AXP | 3523 | $23.24 | 151.6 | 151.6 | |
| KO | 9598 | $47.99 | 200.0 | 200 | |
| KFT | 3301 | $25.34 | 130.3 | 130.3 | |
| PG | 4698 | $51.10 | 91.9 | 91.9 |
1. Johnson & Johnson (JNJ, Financial)
Johnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. The company's worldwide business is divided into three segments: Consumer; Pharmaceutical; and Professional. Johnson & Johnson has a market cap of $165.06 billion; its shares were traded at around $59.9 with a P/E ratio of 13.3 and P/S ratio of 2.6. The dividend yield of Johnson & Johnson stocks is 3.2%. Johnson & Johnson had an annual average earning growth of 12.5% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 4.5-star.
Berkshire owned 32.5 million shares as of 1Q09 and 38.3 million shares as of 2Q09, so it may have bought 5.8 million shares.
2. Wells Fargo & Company (WFC, Financial)
Wells Fargo & Company is a diversified financial services company providing banking insurance investments mortgage and consumer finance services through stores its Internet site and other distribution channels across North America as well as internationally. Wells Fargo & Company has a market cap of $135.31 billion; its shares were traded at around $28.76 with a P/E ratio of 32.2 and P/S ratio of 2.6. The dividend yield of Wells Fargo & Company stocks is 0.8%. Wells Fargo & Company had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Wells Fargo & Company the business predictability rank of 4-star.
Berkshire owned 302.6 million shares as of 1Q09 and 316.8 million shares as of 2Q09, so it may have bought 14.2 million shares.
3. ConocoPhillips (COP, Financial)
ConocoPhillips is a major international integrated energy company with operations in some 49 countries. ConocoPhillips has a market cap of $65.29 billion; its shares were traded at around $44.07 with a P/E ratio of 7.3 and P/S ratio of 0.3. The dividend yield of ConocoPhillips stocks is 4.2%. ConocoPhillips had an annual average earning growth of 19% over the past 10 years.
Berkshire owned 71.2 million shares as of 1Q09 and 64.5 million shares as of 2Q09, so it may have sold 6.7 million shares.
The sale should not be a surprise as Warren Buffett stated the fact in the 1Q09 10-Q:
Investment losses from other-than-temporary impairments for the first quarter of 2009 predominantly relate to Berkshire’s investment in ConocoPhillips common stock. The market price of ConocoPhillips shares declined sharply over the last half of 2008. In the first quarter of 2009, Berkshire sold pproximately 13.7 million shares of ConocoPhillips and sold additional shares in April. Although Berkshire expects the market price for ConocoPhillips shares to increase over time to levels that exceed original cost, Berkshire may sell some additional shares before the price recovers. Sales in 2009 were or may be in anticipation of other investment opportunities, to increase overall liquidity and to carry back realized capital losses to prior years for income tax purposes. Capital losses can be carried back three years and carried forward five years for federal income tax purposes. Income taxes of approximately $690 million that were paid on capital gains in 2006 will be fully recoverable if capital losses of at least $1.98 billion are generated by the end of 2009. Since a significant portion of the decline in the market value of Berkshire’s investment in ConocoPhillips occurred during the last half of 2008, a significant portion of the other-than-temporary impairment losses recorded in earnings in the first quarter of 2009 was recognized in other comprehensive income as of December 31, 2008.
Other Top Holdings
The 10-Q Listed the other four top holding positions: American Express, CoCa-Cola, Kraft Foods, and Procter & Gamble. It appears he has held those positions steady.
American Express Company is primarily engaged in international credit card and banking services throughout the world. American Express Company has a market cap of $38.17 billion; its shares were traded at around $32.69 with a P/E ratio of 24 and P/S ratio of 1.4. The dividend yield of American Express Company stocks is 2.2%. American Express Company had an annual average earning growth of 1.3% over the past 10 years. Berkshire holds 151.6 million shares/
The Coca-Cola Company is the world's largest beverage company and is the leading producer and marketer of soft drinks. The CocaCola Company has a market cap of $114.22 billion; its shares were traded at around $49.34 with a P/E ratio of 16.3 and P/S ratio of 3.6. The dividend yield of The CocaCola Company stocks is 3.3%. The CocaCola Company had an annual average earning growth of 5.3% over the past 10 years. GuruFocus rated The CocaCola Company the business predictability rank of 2-star. Berkshire Hathaway has 200 million shares.
Kraft Foods Inc. is the largest branded food and beverage company headquartered in the U.S. and the second largest in the world. Kraft Foods Inc. has a market cap of $42.27 billion; its shares were traded at around $28.7 with a P/E ratio of 15.1 and P/S ratio of 1. The dividend yield of Kraft Foods Inc. stocks is 4.1%. Berkshire owns over 130 million shares of KFT.
The Procter & Gamble Company manufactures and markets a broad range of consumer products in many countries throughout the world. The Procter & Gamble Company has a market cap of $151.65 billion; its shares were traded at around $52.03 with a P/E ratio of 14.5 and P/S ratio of 1.7. The dividend yield of The Procter & Gamble Company stocks is 3.5%. The Procter & Gamble Company had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated The Procter & Gamble Company the business predictability rank of 3-star.Berkshire owns over 90 million shares of PG.
What to Look Forward to
As of 1Q09, Berkshire Hathaway owns 41 domestic stocks in equity portfolio. What else did he change to the portfolio? We are waiting for the 13-F filing to get a complete picture for what Buffett has bought or sold for the Berkshire. That new information will be coming in about one week.
GuruFocus is holding a contest asking users to name the stocks that Warren Buffett bought for the quarter ended on June 30, 2009. Two winners will be chosen after Warren Buffett's Form 13-F is filed. The register-user only contest is still on, click here to participate.
GuruFocus takes it as its mission to document the investment activities and methodologies of Investment Gurus such as Warren Buffett. More information is available to Premium Member. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
